1. Field of the Invention
The subject invention relates to financial portfolio management, and more particularly, to a system and method for managing credit risk as it relates to issuers of fixed income securities.
2. Background of the Related Art
Evaluating the credit risk associated with an issuer of fixed income securities is a critical aspect of portfolio management. Regardless of whether the issuer is public or private, foreign or domestic, small or large, portfolio managers need to assess the issuer's probability of default before a transaction can be executed. The probability of default or credit risk associated with an issuer is typically assessed using quantitative or objective financial data including capital structure, volatility, and asset value, related securities issued to or by the company, agency ratings and market analytics. Oftentimes, the credit risk or exposure associated with an issuer is evaluated using subjective or qualitative information such as analyst opinions and commentary from market observers.
It would be beneficial to provide a relational database containing subjective and objective information relating to issuers of fixed income securities, and to provide a web-based system and method which enables a credit analyst to readily access the information in the database to evaluate the credit worthiness and risk associated with an issuer of securities.
It would also be beneficial to provide a web-based system and method that enables portfolio managers and credit analysts to readily communicate with one another to obtain credit approval for an issuer of securities in an effective and efficient manner.